Problema Solution
City Cellular purchased $28,900 in cell phones on April 25. The
terms of sale were 4/20, 3/30, n/60. Freight terms were F.O.B.
destination. Returned goods amounted to $650.
a. What is the net amount due if City Cellular sends the
manufacturer a partial payment of $5,000 on May 20?
b. What is the net date?
c. If the manufacturer charges a 4 1 _ 2 % late fee, how much would
City Cellular owe if it did not pay the balance by the net date?
Answer provided by our tutors
a. net amount due has 3% discount because it was paid within 30 days
partial payment credit = partial payment / (100% - cash discount rate)
net amount due = net price - partial payment credit
net amount due = 28900 - 5000/0.97
net amount due = $23,745
b. the net date is in 60 days from April 25 that is Jun 24
c. 4 1/2 = 4.5% late fee
28900 + 0.045*28900 = $30,200.5